Changan eyes Spain factory for European EV expansion and tariff avoidance
Changan plans Spain factory and launches electric SUVs in Europe
Changan eyes Spain factory for European EV expansion and tariff avoidance
Changan considers Spain for local production to avoid EU tariffs, introduces Deepal S05 and S07 electric SUVs, and invests €2 billion by 2030 for European expansion.
2026-01-31T07:33:21+03:00
2026-01-31T07:33:21+03:00
2026-01-31T07:33:21+03:00
Chinese automotive giant Changan has just begun its European expansion, but is already considering launching local production. Spain has emerged as one of the key contenders to host a factory—a move that would allow the company to avoid European tariffs and strengthen its position in the region.At the same time, Changan is introducing two electric SUVs to the Spanish market: the Deepal S05 and S07, priced from €37,390 and €44,990 respectively, with notably lower costs available through financing. Over the next three years, the brand plans to launch eight models and establish a network of 80 dealerships, promoting the Deepal, Nevo, and later Avatr marques.In Europe, the company intends to invest around €2 billion by 2030, with local after-sales support to be organized through Kuehne+Nagel. According to industry sources, Spanish sites are already being assessed by the Changan team. The country’s appeal is bolstered by examples of other Chinese investments—from CATL to Chery—which are launching their own manufacturing projects.One decisive factor could be Changan’s partnership with Ford. The Almussafes plant is operating well below full capacity, and leveraging its infrastructure would enable a rapid production rollout. Alternatives include building a new facility or even acquiring a European brand.Against a backdrop of intensifying competition among Chinese manufacturers, Changan is accelerating its localization efforts, aiming to secure a place in Europe’s affordable and tech-savvy electric vehicle segment.
Changan, European expansion, Spain factory, electric SUVs, Deepal S05, Deepal S07, EV market, Chinese automakers, European tariffs, automotive investment
2026
Michael Powers
news
Changan plans Spain factory and launches electric SUVs in Europe
Changan considers Spain for local production to avoid EU tariffs, introduces Deepal S05 and S07 electric SUVs, and invests €2 billion by 2030 for European expansion.
Michael Powers, Editor
Chinese automotive giant Changan has just begun its European expansion, but is already considering launching local production. Spain has emerged as one of the key contenders to host a factory—a move that would allow the company to avoid European tariffs and strengthen its position in the region.
At the same time, Changan is introducing two electric SUVs to the Spanish market: the Deepal S05 and S07, priced from €37,390 and €44,990 respectively, with notably lower costs available through financing. Over the next three years, the brand plans to launch eight models and establish a network of 80 dealerships, promoting the Deepal, Nevo, and later Avatr marques.
In Europe, the company intends to invest around €2 billion by 2030, with local after-sales support to be organized through Kuehne+Nagel. According to industry sources, Spanish sites are already being assessed by the Changan team. The country’s appeal is bolstered by examples of other Chinese investments—from CATL to Chery—which are launching their own manufacturing projects.
One decisive factor could be Changan’s partnership with Ford. The Almussafes plant is operating well below full capacity, and leveraging its infrastructure would enable a rapid production rollout. Alternatives include building a new facility or even acquiring a European brand.
Against a backdrop of intensifying competition among Chinese manufacturers, Changan is accelerating its localization efforts, aiming to secure a place in Europe’s affordable and tech-savvy electric vehicle segment.
